A risky $$425,000$ investment is expected to generate the following cash flows:

a$.$ If the firm's cost of capital is $9$ percent, should the investment be made? Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your

answer to the nearest dollar.

NPV: $

The investment

be made.

b$.$ An alternative use for the $$425,000$ is a four$-$year U$.$S$.$ Treasury bond that pays $$29,750$ annually and repays the $$425,000$ at maturity. Management believes that the cash

from the risky investment are equivalent to only $80$ percent of the certain investment, which pays $7$ percent. Should the investment be made? Use Appendix $B$ to answer the

question. Do not round other intermediate calculations. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

NPV: $

The investment

be made.